Apparel Costing

Andrea Kennedy is founder of Fashiondex.com and an Assistant Professor of Fashion Merchandising at LIM College. As a designer, she has worked with many labels, including Bob Mackie, Sunny Leigh, Calvin Klein, and Ann Taylor. Andrea Reyes is an Adjunct Professor at LIM College, The Fashion Institute of Technology, Baruch College, USA. She is also the Chair of the NYC Fair Trade Coalition a network of ethical business owners and advocates as well as co-founder of A. Bernadette, a sustainable lifestyle brand which hosts educational sustainable travel retreats. Francesco Venezia is an Adjunct Professor at The Fashion Institute of Technology, Baruch College of Continuing and Professional Studies and LIM College in New York City. He has worked in the fashion industry merchandising at Ralph Lauren, Calvin Klein Underwear and Luxottica Eyewear. Francesco is also the founder of his own jewelry brand, VITA E LIBERTA.

Acknowledgments
Preface
Introduction

1. Costing Basics
The Role of Costing
The Costing Timeline
Costing Terms and Vocab
Summary

2.Traditional Apparel Costing
Introduction
First Cost
Markup
Summary

3. Global Production Sourcing and Costing
Introduction
Effects of Global Production on Costing
International Costing Terms
Direct Factory Sourcing
Buying Office and Sourcing Agent Fees
Freight Forwarding Charges
Customs Clearance Fees
Duty
Summary

4. The Factors of Costing
Introduction
Direct versus Indirect Cost Factors
Fixed versus Variable Costs
Case Study: The Costs of Missing Fabric
Summary

5. Activity-Based and Product Development Costing
Activity-Based Costing
Product Development and Sampling
Estimating Product Development Costs
Product Development Costs
Summary

6. Target Market and Private-Label Pricing
Identifying Your Target Customer
Types of Pricing
Competitor Research
Target Market Costing
Value-Based versus Cost-Based Pricing
Private-Label Pricing
Private-Label Pricing Has a Competitive Advantage
Summary

7. Margins, Markups, and Markdowns
Profit Margins
Omni-Channel Retailing
Discounts
Markdowns
Chargebacks
Markdowns, Discounts, and Chargebacks on the Cost Sheet
Recording Profitability
Meeting the Customer’s Needs
Winning the Profit Game
Case Study: Using Existing Styles for Off-Price Divisions
Case Study: Amazon Case Study
Summary

8. Ways to Cut Costs
It Starts with the Sample
Watering Down the Line
The Cost Is in the Fabric
Those Trims and Notions Add up Too
Negotiations with Vendors
Negotiating and Reducing Costs to Achieve Profit Margin
And What about Indirect Cost-Cutting?
Case Study: A. Bernadette
Summary

9. Costing for Today’s Sustainably Minded Market
Blockchain Technology
Summary

Glossary
References
Companion Website Resources
Sample Cost Sheets
Index